Despite having a mid-level per capita income and a not so unimpressive growth rate, West Bengal's finances have fared poorly on most parameters when compared with other states. Its tax to state domestic product ratio is the lowest and the revenue deficit the highest among all general category states. The state's tax performance is so different from that of other states that it is an outlier in the statistical sense. Alongside, the consumptionincome ratio is also low and the savings-income ratio is not very high. This suggests the need for a fresh look at the state's true level of development as well as examining whether low tax collection is a result of its style of governance.
SPECIAL ARTICLE
West Bengal Government Finances: A Critical Look
Debabrata Datta
Despite having a mid-level per capita income and a not so unimpressive growth rate, West Bengal’s finances have fared poorly on most parameters when compared with other states. Its tax to state domestic product ratio is the lowest and the revenue deficit the highest among all general category states. The state’s tax performance is so different from that of other states that it is an outlier in the statistical sense. Alongside, the consumptionincome ratio is also low and the savings-income ratio is not very high. This suggests the need for a fresh look at the state’s true level of development as well as examining whether low tax collection is a result of its style of governance.
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SPECIAL ARTICLE
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EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.